OPEC+ weighs delay on oil production hike

OPEC+ is discussing delaying an oil output increase scheduled to start in October after oil prices hit their lowest in nine months, four sources from the producer group told Reuters this week.

The move comes as oil prices have been falling together with other asset classes on concerns about a weak global economy and particularly soft data from China, the world’s biggest oil importer.

Last week, the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+ as it is known, was set to proceed with a 180,000 barrels-per-day output hike in October, part of a plan to gradually unwind its most recent cuts.

Still, fragile oil market sentiment over the prospect of more supply from OPEC+ and an end to a dispute halting Libyan exports, coupled with a weakening demand outlook, have raised concern within the group, one of the sources said.

A delay to the October output increase is looking “highly possible,” another of the four OPEC+ sources said. All of the sources declined to be identified by name.

Oil prices rose on the possible delay, with global benchmark Brent crude climbing by over $1 to a session high of $74.80 a barrel and later giving up its gains to fall to about $73, its lowest since December.

OPEC and the Saudi government communications office did not immediately respond to requests for comment.